Booz Allen Hamilton awarded $13.5M contract for professional services by HHS FDA

Contract Overview

Contract Amount: $13,502,300 ($13.5M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2005-04-11

End Date: 2010-09-30

Contract Duration: 1,998 days

Daily Burn Rate: $6.8K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: TAS::75 0600::TAS PROFFERSONAL SERVICE

Place of Performance

Location: GERMANTOWN, MONTGOMERY County, MARYLAND, 20875, UNITED STATES OF AMERICA

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $13.5 million to BOOZ ALLEN HAMILTON INC for work described as: TAS::75 0600::TAS PROFFERSONAL SERVICE Key points: 1. Contract awarded for professional services, indicating a need for specialized expertise. 2. The contract duration of nearly 2,000 days suggests a long-term requirement. 3. Awarded as a competitive delivery order, implying some level of market engagement. 4. The Cost Plus Fixed Fee pricing structure can present cost control challenges. 5. The contractor, Booz Allen Hamilton, is a large, established federal contractor. 6. Geographic location of performance in Maryland may indicate a concentration of federal activity. 7. The absence of small business set-aside flags suggests a focus on larger prime contractors.

Value Assessment

Rating: fair

The contract value of $13.5 million over approximately five years averages to about $2.7 million annually. Benchmarking this against similar professional services contracts requires detailed analysis of the specific services rendered. However, for a large, established firm like Booz Allen Hamilton, this value may represent a moderate-sized engagement. The Cost Plus Fixed Fee (CPFF) structure, while allowing for flexibility, can sometimes lead to higher costs if not managed tightly, as the contractor is reimbursed for allowable costs plus a fixed fee. Without specific performance metrics or detailed cost breakdowns, a definitive value-for-money assessment is challenging, but the duration and nature of professional services suggest a significant investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a 'COMPETITIVE DELIVERY ORDER,' which falls under a full and open competition framework. This indicates that multiple vendors were likely solicited, and proposals were evaluated based on predefined criteria. The specific number of bidders is not provided, but the 'competitive' designation suggests more than one offer was received. This level of competition is generally favorable for price discovery and ensuring the government receives competitive proposals.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging innovation among potential contractors.

Public Impact

The Food and Drug Administration (FDA) benefits from specialized professional services to support its mission. Services delivered likely contribute to regulatory functions, research, or operational support within the FDA. The contract's performance location in Maryland suggests a direct impact on the regional economy and workforce. Federal employees and potentially the public benefit from the enhanced capabilities provided by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) pricing can incentivize contractor spending if not rigorously overseen.
Long contract duration requires sustained oversight to ensure continued value and performance.
Reliance on a single large contractor may limit opportunities for smaller, specialized firms.

Positive Signals

Awarded through a competitive process, suggesting potential for good pricing and vendor selection.
Booz Allen Hamilton is a reputable contractor with a significant track record in federal services.
The contract supports a critical agency (FDA), indicating alignment with national priorities.

Sector Analysis

This contract falls within the professional services sector, a broad category encompassing consulting, research, technical support, and management services. The federal government is a major consumer of these services, particularly within agencies like the FDA that require specialized expertise for complex regulatory and scientific functions. The market for federal professional services is highly competitive, dominated by large, established firms as well as numerous small and medium-sized businesses. Spending in this sector is often driven by evolving policy needs, technological advancements, and the need for specialized knowledge that may not be available in-house.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). As a competitive delivery order awarded to a large prime contractor like Booz Allen Hamilton, there is a possibility for subcontracting opportunities for small businesses. However, without specific subcontracting plans or goals detailed in the award, the extent of small business participation remains uncertain. The absence of a set-aside suggests the primary focus was on obtaining the best overall solution, potentially from larger, more experienced firms.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration team within the Food and Drug Administration. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor allowable costs and ensure the fixed fee is justified by performance. Transparency would be enhanced through regular reporting requirements from the contractor and potential audits. Inspector General jurisdiction would apply if any concerns regarding fraud, waste, or abuse arise during the contract's lifecycle.

Related Government Programs

HHS Professional Services Contracts
FDA Support Services
Federal Consulting Services
Cost Plus Fixed Fee Contracts

Risk Flags

Cost Plus Fixed Fee pricing requires robust oversight to prevent cost overruns.
Long contract duration necessitates sustained monitoring for performance and value.
Lack of specific competition details limits assessment of price discovery effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $13.5 million to BOOZ ALLEN HAMILTON INC. TAS::75 0600::TAS PROFFERSONAL SERVICE

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Food and Drug Administration).

What is the total obligated amount?

The obligated amount is $13.5 million.

What is the period of performance?

Start: 2005-04-11. End: 2010-09-30.

What specific professional services were rendered under this contract?

The provided data does not specify the exact nature of the 'professional services.' However, given the awarding agency is the Food and Drug Administration (FDA), these services could encompass a wide range of support functions. This might include areas such as regulatory affairs consulting, scientific research support, data analysis, IT system development or maintenance, program management, policy development, or administrative support. To understand the precise services, one would need to consult the contract's statement of work (SOW) or task orders issued against it. The duration of the contract (nearly 2,000 days) suggests a substantial and ongoing need for these services, integral to the FDA's mission.

How does the $13.5 million award compare to typical FDA professional services spending?

The $13.5 million award over approximately five years represents an average annual value of around $2.7 million. This figure needs to be contextualized within the FDA's overall budget and its extensive portfolio of contracts. The FDA procures a vast array of services, from complex scientific research to IT support and administrative functions. While $2.7 million annually is a significant sum, it may be considered moderate when compared to the agency's largest contracts, particularly those involving major IT modernization or extensive clinical research oversight. A precise comparison would require analyzing historical spending data for similar service categories within the FDA and benchmarking against contracts of comparable scope and duration.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this nature?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns if not managed diligently. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This can incentivize the contractor to incur higher costs, as their fee remains constant regardless of the actual cost incurred. For the government, the risk lies in paying more than necessary if cost controls are weak or if the initial cost estimates were inaccurate. Effective oversight, detailed cost monitoring, and clear performance metrics are essential to mitigate these risks and ensure the government receives good value. The fixed fee itself should be negotiated based on a realistic assessment of the effort required.

What is Booz Allen Hamilton's track record with the FDA and similar agencies?

Booz Allen Hamilton is a major federal contractor with extensive experience across numerous government agencies, including the Department of Health and Human Services (HHS) and its sub-agencies like the FDA. They have a long history of providing a wide range of professional and technical services, including IT, cybersecurity, management consulting, and scientific support. Their track record with the FDA likely includes numerous contracts supporting various aspects of the agency's mission, from regulatory processes to public health initiatives. While specific performance details for this particular $13.5 million contract are not provided, Booz Allen Hamilton's status as a large, established prime contractor suggests a significant capacity and established relationship with federal clients.

How has federal spending on professional services evolved, and where does this contract fit?

Federal spending on professional services has generally trended upwards over the past two decades, driven by the increasing complexity of government missions, the need for specialized expertise, and a desire for flexibility. Agencies often rely on contractors for functions that require skills not readily available in-house or for surge capacity. This $13.5 million contract for the FDA fits within this broader trend, representing a typical investment in external expertise to support critical regulatory and public health functions. It reflects the government's ongoing reliance on the private sector to augment its capabilities, particularly in specialized fields where contractors possess deep knowledge and experience.

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation (UEI: 964725688)

Address: 8283 GREENSBORO DR # 700, MC LEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $19,110,312

Exercised Options: $13,502,300

Current Obligation: $13,502,300

Parent Contract

Parent Award PIID: 26301D0072

IDV Type: IDC

Timeline